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FLOWS
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Wednesday, August 21, 2013
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BUY
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ARMADA, CIMB,
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SELL
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GAMUDA, DAYANG, SUNWAY, MISC
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STOCK ALERT
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STOCK NAME
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DATE
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PRICE
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BUY/SELL
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BUY BACK
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GASMSIA(5209)
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21/8/2013
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RM3.37
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Take Profit
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-
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Stock has done very well for this year with ytd
performance of 37% vs the KLCI Index’s 3%. It is also trading at lofty
valuations with forward PER of 24x & p/bk of 4.3x compared to Asia ex
Japan average utility stocks PER of 11x & p/bk of 1.5x. Gasmsia average
trailing PER & p/bk since listing is 22.6x & 3.7x vs current PER
& p/bk of 25.9x & 4.3x. We believe ii is appropriate to take profit
at current level as the positives have been reflected in the price. In
addition, the DCF valuation of the stock was raised after the general
elections when the analyst community reduced their discount rate due to the
perceived lower political risk. However, for the past 3 weeks, 10-yr MGS
yield has increased more than 50bps due to exit of foreign funds from the
emerging markets on fear of Fed tapering of their QE program and the downgrade
of Malaysia’s credit rating outlook. Technically, the stock is losing
momentum with negative divergences between the price & its technical
indicators, and its macd has just cut down. Take profit
(PT)
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DIALOG (7277)
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21/8/2013
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RM2.68
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ACCUMULATE
on weakness
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-
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stock has retraced >50% of
its rally from RM2.23 to Rm3.08 and is 165 from its 30-day high. The current
correction is also in the fifth wave of its down move which is normally a
good level to accumulate the stock on weakness. The long-term story for
Dialog is still intact and it is in this period of indiscriminate selling due
to a shift in asset allocations, that one has the opportunity to buy in size
on the cheap. The EPCC of Phase 1 of Pengerang CTF is expected to progress
more aggressively towards the end of CY13 and is expected to be completed by
CY14. Revenue is expected to kick in as Phase 1a, 1b & 1c start through
2014. Up to 80% of Phase 1 storage capacity has already been taken up by
customers on medium to long-term contracts. Accumulate on weakness
(PT)
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Calls for AUGUST Week 2/Week 3
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STOCK
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Initiation Dates
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Initiation price
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BUY/SELL
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TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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SKPETRO(5218)
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14/8/2013
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RM3.71
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BUY
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-
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RM3.70
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-0.3%
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RHBCAP(1066)
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14/8/2013
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RM8.05
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BUY
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-
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RM7.80
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-3.2%
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PTARAS(9598)
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15/8/2013
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RM6.16
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Trading SELL
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RM5.50
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RM5.95
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-3.5%
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SUPERMX(7106)
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15/8/2013
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RM2.40
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Trading SELL
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RM2.18
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RM2.28
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-5.0%
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TRC (5054)
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16/8/2013
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RM0.64
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Trading BUY
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RM0.75
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RM0.595
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-7.1%
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TIMECOM(5031)
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16/8/2013
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RM4.00
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BUY
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-
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RM3.82
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-4.5%
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NAIM(5073)
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19/8/2013
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RM3.86
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Trading BUY
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-
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RM3.74
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-3.2%
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MHB (5186)
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19/8/2013
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RM4.07
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ACCUMULATE
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-
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RM3.92
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-3.7%
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E&O(3417)
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20/8/2013
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RM2.19
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Trading SELL
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RM2.00
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RM2.08
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-5.1%
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GAMUDA(5398)
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20/8/2013
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RM4.62
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BUY on weakness
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RM5.20
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RM4.46
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-3.4%
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We’ve added
an extra feature (first column from right) to indicate our recommendation for
our call.
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HOLD
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CONT SELL
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SELL/ TAKE PROFIT
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CONT BUY
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STRONG BUY
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